Over the past few weeks, gold has risen in market and numismatic value due to a low performance against expectations. Falling short of expectations is the result of reports that the Federal Reserve may put a stop to its monetary tightening cycle in 2019.
In short, the dollar is beginning to stumble and this is helping gold to increase its market share. Most of these reports, and the resulting shift in market shares, can be traced back to Jerome Powell’s comments on Friday, January 4. His statements focused mainly on interest rate hikes and how they may be affecting the United States economy. Read more: US Money Reserve | Ispot and US Money Reserve | Facebook
In response, the Federal Reserve has began shifting its priorities when it comes to interest rate hikes; over the past few months, they’ve been steadily increasing interest rates. Now, they’re set to begin rolling back many of these hikes. Many have stated that the interest hikes over the past few years have been seen as a route to normalizing the economy. If that’s so, why is it that their position has been completely reversed?
It’s not because they were ordered to do so; the Federal Reserve controls monetary policy in the United States. They don’t receive order from any other entity, private or public and this includes the White House and US Government.
Recently, the gold market has been moving in an upward direction. In the latest USMR Market Insights, Patrick Brunson and Coy Wells discuss their predictions for gold, both in the short and long term.
— U.S. Money Reserve (@USMoneyReserve) January 16, 2019
While many politicians may make public suggestions on monetary policy, not even President Donald Trump can step in to direct them to do so. Learn more about US Money Reserve: http://www.manta.com/c/mml8pv9/u-s-money-reserve-in and http://epodcastnetwork.com/u-s-money-reserve/
However, this pedestal has been on somewhat shaky ground over the past few years. Skepticism has been thrown at the Federal Reserve over concerns that they may be working in collusion with private individuals from the White House and Wall Street. This is because the position of Federal Reserve Chair is appointed by the President, not during an election.
Much of these rumors have led to speculation that the Fed has been raising rates as they believe that another recession is incoming; one of the few ways the Fed protects the dollar before a recession and to get the economy out of one is to raise rates ahead of time.
With the murmurings of a potential recession incoming, it’s important to take care of your financial and asset portfolio. As a trusted source in America when it comes to precious metals, the U.S Reserve has seen how gold has behaved during periods of economic downturn.
They’ve also noted that these precious metals have been essential recession-proof; it could also serve as a way to keep your purchasing power high, before ever entering the market.